Some companies in Iceland benefited from 83 percent debt write off

Investment and holdings companies in Iceland have had 83 percent of their debts written off since a law was passed on helping indebted individuals, households and companies following the 2008 banking crash up to 30th September last year.

The news on the unexpected beneficiaries of the law comes from figures released yesterday by the Ministry of Economic Affairs. The ministry has recently come under the control of Left Green party leader Steingrímur J. Sigfússon.

The total debt concessions given to investment and holdings companies during the time period amounts to ISK 170 billion (EUR 1.07 billion).

Meanwhile during the same period retail & service companies and fishing companies had 60 percent of their debts forgiven: ISK 94 billion in the retail & service sector and ISK 13 billion in seafood.

Construction and contracting companies also had 60 percent debt relief and the figure was 50 percent among real estate firms. Companies in other fields had 47 percent of debt written off, RÚV reports.

The figures were made by a dedicated surveillance committee which organises debt restructuring and collects and publishes data and information on the financial restructuring of companies whose outstanding debts are over a billion krónur.